WisdomTree: Don't Double Your Risk, Use Hedged ETFs Instead

Investors that buy international stock ETFs that do not hedge currency exposure are adding a secondary risk to their investment, said David Abner, Head of Capital Markets for WisdomTree. Abner said the WisdomTree Japan Hedged Equity ETF (DXJ) has grown tremendously because investors want Japan exposure but do not want to be hurt by a declining Yen. He added that investors with a similar view toward Europe are using the WisdomTree Europe Hedged Equity ETF (HEDJ), which hedges out Euro exposure. Finally, Abner said the WisdomTree India Earnings ETF (EPI) has seen inflows from investors seeking exposure to an otherwise hard-to-reach market.